Union Bank FD Rates 2024 : A Comprehensive Guide

Friends and family probably suggested depositing your money in a bank FD account. They would’ve told you how the bank FD is a predictable and secure way to grow your savings. Whenever you deposit your savings into a fixed deposit (FD), the bank pays a predetermined interest, and who wouldn’t like a stable and low-risk investment option? No one, right? 

Now that we’ve convinced you about the benefits of a fixed deposit, let us look at the profitability of this investment scheme. Union Bank of India is a government bank under the Ministry of Finance. It offers an FD scheme, which offers customers attractive Union Bank FD rates. The Union Bank offers fixed deposit rates ranging from 3% to a maximum of 7.5%. The highest FD rate provided by Union Bank is 7% p.a. for a duration exceeding 5 to 10 years.

Union Bank Fixed Deposit Rates 2024

Stay updated with the current Union Bank FD interest rates applicable to domestic citizens for amounts below Rs. 2 crores. You can refer to this table to see the annual interest rates offered by the Union Bank based on tenure.

Important Note: The Union Bank FD rate is credited every quarter in April, July, October and January annually. It is calculated on a daily product basis. 

Explore Union Bank’s Tax Saving FD Rates

You can increase your savings by depositing them in an FD account. What’s interesting is that FDs can also provide you with tax benefits.  Many banks, including Union Bank, offer attractive interest rates on tax-saving FDs. However, it is important to note that these interest rates vary from bank to bank. 

Additionally, they also depend upon the tenure for which you keep the FD in your bank account. Therefore, it is important to consider these factors before choosing the right option for yourself. The Union Bank Tax Saving FD rate for five years and above is 6.5%.

Union Bank’s FD Rates for Deposits Less than Rs. 2 Crores

Most people prefer to invest their savings in multiple ways to gain benefits, however, a few like to save money via an FD. Especially in certain cases, say after selling a property, people end up with a large amount of money (Rs. 2 crores – Rs.10 crores). In such cases, it is advised to learn about the FD rates from your respective bank. 

FD Interest Rates for Regular and Senior Citizens

The following table shows the tenure and interest rates per annum for senior citizens and regular citizens. Have a look at it to get a better understanding of the same:-

Exploring Union Bank’s NRI FD Rates 

If you have been investing via a fixed deposit, you probably noticed that banks offer different schemes for Indian citizens and NRIs. Various factors, such as tenure, interest rates, and tax benefits, vary between the two. Since these schemes are updated regularly, it’s a good idea to learn more about the Union Bank’s NRI FD rates. Discover the interest rates for NRE Fixed Deposits below Rs. 2 crores, effective January 19, 2024.

Unveiling Union Bank of India’s FCNR Rates

NRIs receive varying interest rates on their fixed deposits. Indian banks provide different schemes for their bank accounts, commonly referred to as FCNR accounts (Foreign Currency Non-Resident Account). The FCNR rates also vary based on tenure and are updated as per the guidelines issued by the Indian government. The table below showcases the interest rates in different currencies based on different tenures:-

Union Bank Fixed Deposit Rates for Senior Citizens Explained

If you have any senior citizens in your family, then take a look at this table to understand the yearly interest rates for different tenure. Indian banks provide special schemes for senior citizens. Even if the duration appears the same, the interest rates for fixed deposits may differ. So, ensure not to mix up with the Regular FD rates meant for Senior Citizens FD rates.

The table below showcases the current Union Bank Fixed Deposit rates, depending on the tenure, applicable to senior citizens for amounts below Rs. 2 crores.

Union Bank’s FD Rates for Deposits for Senior Citizens Less than Rs. 2 Crore

Now that you know about the FD interest rates for senior citizens, keep in mind that the rates can differ for larger amounts. For instance, if a senior citizen deposits a substantial sum, like Rs. 5 crores, in the bank, they could be eligible for a different interest rate scheme. To find out more about such variations, you may want to inquire specifically about Union Bank FD interest rates for significant deposits.

Exploring the Advantages and Perks of Union Bank Fixed Deposits

Let us have a look at the benefiting features of Union Bank Fixed Deposits:-

• Attractive interest rates on the FD schemes.
• Flexible duration options from one week to ten years.
• Easy availability of loans against the FD.
• Option to close the FD account before its maturity date.
• Taxable interest earnings with tax deducted at the source.
• Provision to add nominees to the FD scheme.
• Opportunity to open FD accounts as joint accounts.

Qualifications and Documentation Needed for Opening an FD Account with Union Bank

Here are the required documents for Opening an FD Account with Union Bank of India along with the Eligibility Criteria:-

• Identity Proof: You can share the information about your passport, PAN card, Voter ID, Driver’s licence, and Aadhaar card.
• Address Proof:  As proof of address, you can show your passport, Aadhaar card, and bank statement with a cheque.
• Date of Birth Proof: You can share the service discharge certificate, PAN card, Aadhaar card, and voter ID card details.

Comprehending the Eligibility Criteria for FD Account in Union Bank

If you belong to any of the below-mentioned categories, then you are eligible to apply for an FD account in Union Bank:-

• Resident individuals
• Illiterate individuals
• Blind individuals
• Minors
• Purdanasheen Ladies
• Associations
• Clubs
• Societies
• Trusts
• Agencies/ Institutions

Important Note: Please note that the applicant’s educational qualification or physical abilities are not factors considered when opening an FD account in Union Bank.

What is the Procedure for Opening an FD Deposit Account with Union Bank?

Two options are available for opening a Union Bank FD Deposit account:- Online and Offline. 

Online Method to Open FD Account

Unveiling the Seamless Process of Opening a Union Bank FD Account Online, Step-by-Step.

Step 1: You should visit the official website of the Union Bank of India.

Step 2: Use your credentials to log in to the internet banking portal.

Step 3: You need to click on the option of FD.

Step 4: Fill in all the details as asked.

Step 5: Select the appropriate amount you wish to debit.

Offline Method to Open FD Deposit Account

We have given the detailed process of opening Union Bank FD accounts offline below. 

Step 1: Visit the nearest Union Bank of India branch.

Step 2: You need to talk directly to the bank officer. Ask for the fixed deposit account application form.

Step 3: Fill in all the details.

Step 4: You should ensure to attest the copies of all the documents.

Step 5: You must deposit the amount you want to open your FD account.

Step 6: You will then receive an FD receipt.

Union Bank’s Assortment of Fixed Deposit Schemes

There are different types of Union Bank Fixed Deposit schemes. The names are as follows:-

Deposit Reinvestment Certificate (DCIR)

Union Bank offers FD rates that are compounded quarterly, with interest paid along with the principal. The minimum deposit amount is Rs.1,000, while there is no maximum limit.

Fixed Deposit Receipt (FDR)

This account operates similarly to a regular FD account, with a minimum deposit balance of Rs.1,000. However, government-sponsored scheme subsidies do not apply to deposits. The tenure for this account ranges from 6 months to 5 years.

Monthly Income Scheme

Ideal for individuals seeking a steady monthly income with assured returns at a fixed interest rate, this scheme offers a maximum tenure of 5 years and a minimum tenure of one year. A minimum deposit of Rs.1,000 is required to avail of this.

Union Tax Saver

Union Tax Saver offers tax exemptions under Section 80C of the Income Tax Act, 1961. With a lock-in period of 5 to 10 years, this scheme requires a minimum deposit of Rs. 5,000, with subsequent deposits in multiples of Rs. 1000. Individuals can deposit up to Rs. 1.5 lakh.

Easy Tax Saver Deposit Scheme

In the Tax Saver FD Scheme, you can make deposits through monthly instalments. You can enjoy IT exemptions under Section 80C from a maximum deposit limit of Rs. 1.5 lakh.

Short-Deposit Receipt (SDR)

A minimum deposit amount of Rs.1,000 is required, and the tenure can range from 7 to 179 days. The Union Bank FD interest rate is calculated quarterly and paid in a half-yearly format, based on the maturity date.

Union Non-Callable Term Deposits Scheme

This scheme is designed for one-time deposits exceeding Rs. 2 crores. It offers reinvestment certificates, fixed deposit receipts, and short deposit receipts. The tenure for this scheme is 61 days to 3 years.

Motor Accident Claims Annuity Deposit (MACAD)

This scheme is for individuals who need to deposit a one-time sum in compliance with a court. The deposited amount will be disbursed to the individual in Equated Monthly Instalments (EMI). The tenure for this scheme ranges from 3 to 5 years. A minimum monthly annuity of Rs.1,000 is required for a specified duration.

Capital Gain Scheme

The Ministry of Finance initiated this scheme under the Capital Gain Account Scheme, 1988. Taxpayers can avail of exemption benefits on capital gains by depositing the capital gains amount before the deadline for filing their income tax returns.

Money Flex Term Deposit (MFTD)

This scheme provides enhanced returns and the convenience of partial withdrawals at any time before maturity. You can open single and joint FD accounts. The tenure for this scheme ranges from a minimum of 6 months to 10 years. The minimum deposit requirement is Rs. 25,000.

Short-Term Bank Deposit Scheme (STBD)

This scheme aims at mobilising gold reserves held by households and institutions, reducing gold imports in the long term. The principal amount and interest are provided in gold. 

How to Close a Union Bank FD?

Applicants can close their Union Bank FD account when the FD term deposit has matured. They can also close the account prematurely.  

Here are the steps for both premature and mature closing of an FD account.

The first step is to download the FD Closure Form.

How to Close Union Bank Fixed Deposit Account on Maturity?

Here is how you can close your Union Bank Fixed Deposit account after maturity.

• Firstly, fill up the FD Account Closure Form. 
• After downloading the form, you have to fill in all the details. 
• Take the form to the nearest bank branch. 
• Sign the form and submit it to the branch manager or officer-in-charge. If the FD account is a joint account, all people affiliated with the account have to sign the form.
• Attach a copy of KYC documents like PAN, Aadhaar, and Voters IDs.
• When you apply for an FD account, you will receive a deposit certificate/FD receipt as proof. Carry the receipt when submitting the FD closure form. 
• After the validation of the documents, you may either take cash, cheque or DD in your other account.

How to Close Union Bank Fixed Deposit Account Before Maturity?

You must fill out the information and submit it to the bank manager. If you close your FD account before maturity, you might have to pay a penalty.

For the amount less than Rs. 2 crores and the tenure is more than 7 days, the bank will pay 1% less interest than the applicable rates.

An exception is available for the following cases:-

• Flexi Term deposits
• Bank induced closure of term deposits
• Recurring Deposits/Union Monthly Plus Scheme
• Money Flex Term Deposit Scheme

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